Existing 4G operator Everything Everywhere (EE), parent of Orange and T-mobile, already has a licence and upped its bandwidth in the auction.

The figure is a blow to Chancellor George Osborne as it’s more than £1billion less than he had hoped for.

It’s also around 90 per cent less than the amount raised in the sale of 3G.

BT was said to have bought a significant portion of the airwaves, but it is not expected to branch out into mobile.

Ofcom chief executive says the auction was a success

The regulator had placed a reserve price of £1.3 billion on the 4G sale, but today’s total is still much less than the £3.5 billion estimated.

It is good news for parts of the country currently underserved by mobile broadband as 4G coverage will extend beyond existing 3G services, covering 98 per cent of the UK population indoors, and more outdoors.

Ed Richards, Ofcom Chief Executive, said: ‘This is a positive outcome for competition in the UK, which will lead to faster and more widespread mobile broadband, and substantial benefits for consumers and businesses across the country.

‘We are confident that the UK will be among the most competitive markets in the world for 4G services.

‘We also want consumers to be well informed about 4G, so we will be conducting research at the end of this year to show who is deploying services, in which areas and at what speeds. This will help consumers and businesses to choose their most suitable provider.’